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CORPORATE ACCOUNTING EXECUTIVE SUMMARY Related to Retailing Industry

   

Added on  2020-10-22

41 Pages5234 Words286 Views
CORPORATE ACCOUNTING

EXECUTIVE SUMMARYCorporate accounting sets a new standard and referred as recording, measurements along withinterpretation of financial information and data of limited organization. The present report isrelated to retailing industry and companies listed on ASX. The accent retail business inintegrated with Hype business in its operating environment of Apparel. The other company isBreville Group which sells electrical consumer products and home goods and Joyce corporationretails wardrobe and kitchen products. It had shown that retailing industry is having various upsand down which could be resolved by following appropriate strategy.

TABLE OF CONTENTSINTRODUCTION...........................................................................................................................5EQUITY & LIABILITY..................................................................................................................51. Listing item of equity with its alteration over last three years................................................52. Listing item of liability with its change over 3 years..............................................................63. Comparative analysis of debt and equity position of three business....................................10CASH FLOW STATEMENT .......................................................................................................104. Listing items of cash flow with its changes..........................................................................105. Comparative analysis of broad categories of cash flow........................................................116. Comparative analysis of three companies.............................................................................13OTHER COMPREHENSIVE INCOME STATEMENT .............................................................137. Stating items of comprehensive income statement for each organisation............................138. Reason of these items not stated in income statement..........................................................149. Comparative analysis of other comprehensive income statements.......................................1410. OCI must be used for evaluating performance of managers of organization.....................15ACCOUNTING FOR CORPORATE INCOME TAX..................................................................1511. Tax expenses in the latest financial statements...................................................................1512. Calculating effective tax rate..............................................................................................1513. Commenting on deferred tax assets and liability................................................................1614. Increment or decrement in deferred tax asset and liability.................................................1615. Calculating cash tax amount...............................................................................................1716. Calculating cash tax rate.....................................................................................................1817. Reason of differing cash tax rate from book tax rate..........................................................19CONCLUSION..............................................................................................................................20REFERENCES..............................................................................................................................21APPENDIX....................................................................................................................................22Breville group- 2018.................................................................................................................22Breville group- 2017.................................................................................................................24Accent Group 2017...................................................................................................................28........................................................................................................................................................32

Joyce Corporation 2016-...........................................................................................................35Joyce corporation 2017-2018....................................................................................................37

INTRODUCTIONCorporate accounting is considered as special branch of accounting as it deals withpreparation of final accounts, accounting organization and appropriate interpretation of financialstatements. The present report is related to retailing industry and companies listed on ASX. Theaccent retail business in integrated with Hype business in its operating environment of Apparel.The other company is Breville Group which is involved in selleing electrical consumer productsand home goods and Joyce corporation retails wardrobe and kitchen products along withinstallation and supply stores in Wallspan and kitchen connection brand name. Henceforth, theabove organization are comprised in retailing sector and ASX listed as well.EQUITY & LIABILITY1. Listing item of equity with its alteration over last three years20162017% changein 201720172018% changein 2018Breville groupIssued capital1400501400500.00%1400501400500.00%Reserves51344930-3.97%4930678237.57%Retained earnings9648911088514.92%11088512634113.94%Total equity2314052460056.31%2460052596095.53%In year 2017 and 2018, its equity raised with 6.31% and 5.53% respectively. It has beenclearly viewed that there is no change in issued capital as there was alteration in equity becauseof increment in retained earning by 14.92% but in 2017, it has raised reserves and retainedearning as well (Annual report of Breville, 2017).JOYCE20162017% change in 201720172018% change in2018Joyce corporationContributed equity17975180190.24%18019180600.23%Reserves269926990.00%26990-100.00%Non controllinginterest1026193088.11%1930307359.22%5

Retained earnings42903838-10.54%3838697581.74%Total equity25990264861.91%26486281086.12%From year 2017 to 2018, equity raised with 1.91% because of huge increment incontributed equity and retained earning and in 2018, it raised with 6.12% as very less proportionbecause no major change in contributed equity.ACCENT GROUP20162017% change in 201720172018% change in2018Accent groupIssued capital25774138531049.50%3853103869730.43%Reserves77803208-58.77%320812151278.77%Accumulated losses2269319603-13.62%196038184-58.25%Non controllinginterest1547173712.28%1737973-43.98%Total equity24437537065251.67%3706523919135.74%The equity raised with 51.67% and 5.74% in 2017 and 2018 respectively as in 2017 noncontrolling interest raised along with issued capital. On the contrary, its equity raised in year2018 because of increment in issued capital, reserves, accumulated loss and decrement in noncontrolling interest (Annual report of Accent group, 2017).2. Listing item of liability with its change over 3 yearsLiability20162017% change in 201720172018% change in6

2018Breville groupTrade and otherpayables748789478926.59%9478985000-10.33%Borrowings134870-100.00%000.00%Current taxliabilities3700549248.43%5492800045.67%Provisions13916148286.55%148282000-86.51%Other financialliabilities22231837-17.36%183714000662.11%Currentliabilities1082041169468.08%116946109000-6.79%Other payables42654199-1.55%4199700066.71%Borrowings1036235841245.89%358414500025.55%Provisions1131924-18.30%92410008.23%Non currentliabilities1575840964159.96%409645300029.38%Total liability12396215791027.39%1579101620002.59%Reason for change in liability in 2018Trade and other payables: Amount owned through suppliers and not paid on immediatebasis in form of cash are not replicated as trade payable is decreased.Other payablesBorrowings: The total amount of collateral against lender will lend funds related tobusiness. Breville group reduced its borrowing in year 2018ProvisionsReason for change in liability in 2017Huge borrowingsJOYCE 7

20162017% change in 201720172018% change in2018Joyce CorporationTrade and otherpayables88641007313.64%100731177916.94%Provisions1000136136.10%1361152812.27%Interest bearingloans000.00%04350.00%Provisions forincome tax115311530.00%1153820-28.88%Currentliabilities110171258714.25%125871456215.69%Interest bearingloans086000.00%86001005616.93%Deferred taxliabilities317262-17.35%262554111.45%Provisions962712-25.99%71281814.89%Non currentliabilities12799574648.55%95741142819.36%Total liability122962216180.23%221612599017.28%Reason for change in liability in 2018Huge provisionsReason for change in liability in 2017Decrement in derivative financial instrumentTrade and other payables (increase)8

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